Tier 1 and Tier 2

Find out more about Tier 1 and Tier 2 standards and where to find further information. 

Charities Services' main focus is on supporting Tier 3 and Tier 4 organisations, which make up around 97% of the Charities Register and which are likely to have less resource available for an accountant.

Refer to the External Reporting Board's (XRB) website (external link) for more information about the standards and further guidance. 


Tier 1 & 2 charities must prepare financial statements in accordance with generally accepted accounting practice (GAAP). Summarised financial statements do not meet the requirements of GAAP, and therefore only full sets of financial statements should be submitted to Charities Services.

Example Financial Reports

Paralympics New Zealand (Tier 2)

Paralympics New Zealand is a tier 2 organisation dedicated to supporting disabled people in participating in sports at regional, national, and international levels. We liked the way that they have included a summary financial report directing readers to the key elements of their financial statements as well as providing other useful information for the reader. We also liked the clear and thorough reporting of value in kind transactions.
View the Paralympics New Zealand Financial Report [PDF, 6.5 MB]

Malaghan Institute (Tier 2)

Malaghan Institute is a tier 2 charity which uses contestable grants and donations to conduct research into the nature , origins and causes of disease. They currently have key focuses on cancer, asthma and allergies, and nutrition. This is a great example of disclosure of the impact of the transition to the new reporting standards which clearly illustrates the quantitative adjustments made to the financial statements.
View the Malaghan Institute of Medical Research Financial Report [PDF, 676 KB]